Reports: Globalfoundries hints at $10-bn fab location

LONDON – Foundry chip maker Globalfoundries Inc. is planning to invest $10 billion in a next-generation wafer fab possibly next to its existing Fab 8 in upstate New York, according to local reports quoting CEO Ajit Manocha.

Manocha was speaking Thursday (Jan. 10) at the College of Nanoscale Science and Engineering at the University of Albany. Manocha said that the previously announced creation of a $2-billion R&D center next to Globalfoundries' Fab 8 in Malta, New York, will bring the company closer to investing $10 billion in a next-generation wafer fab, the reports said.

In his speech Manocha referred to the existing fab as Fab 8.1 and said that Globalfoundries (Milpitas, Calif.) is committed to New York state and would move ahead with Fab 8.2 when the company is ready, according to an Albany Times Union report.

The recently-announced $2-billion Technology Development Center (TDC) is intended to support manufacturing process node transition and R&D around interconnect and packaging for the 3-D stacking of chips, advanced mask-making and the use of extreme ultraviolet lithography. Construction is expected to start early in 2013 and be completed late in 2014. The spending will bring the total capital investment at the Fab 8 campus to more than $8 billion and direct employment up to about 3,000 people.

If Manocha is planning to put Globalfoundries' next fab in New York, the idea seems to be replacing the possibility of building a fab in Abu Dhabi, the home of Globalfoundries' owner Advanced Technology Investment Company (ATIC), which is a vehicle of an Abu Dhabi sovereign wealth fund.

A plan to build a fab in Abu Dhabi that could start operation in 2015 was put on hold late in 2011. It is also remains unclear how Globalfoundries would fund a $10 billion investment. The company has been set a goal of achieving profitability by 2015 by ATIC. Along profitability came the goal that Globalfoundries from then on would be self-sustaining and not require additional funding from its parent.

I think everyone is missing the NY State advantage of IBM support in technology, as finfet's of all kinds evolve. These are automated factories, with automated design tools, and a few highly paid process integration engineers might prefer living in New England vs Abu Dhabi or Dresden. And they have Bay Area presence as well. Intel has proven that US is safer for manufacturing as long as its highly automated. Just my opinion.

There is a big difference between building, running, and keeping advancements up on a leading edge FAB versus many other industries. 5 years is not nearly enough to develop enough indiginous knoewledge for that to happen not to mention in 5 years it is becoming obsolete and who advances it to stay competitive?

GF will lose $$$ billions more in NY. Might as well lose the money in Abu Dhabi and get the Emiratis some real experience with this industry. Every year delayed is another year without progress and additional billions spent / lost in foreign lands. Get some top expats & partner with Emirati, with few exceptions after 5 years expat goes home & Emirati runs the show.

What is GF's exposure to AMD?
70% ...80% of total sales ?
GF is NOT a foundry in the sense of TSMC - it's the ex AMD (IDM) manufacturing operation - now called "foundry".
To make matters worse AMD pays GF money to get out of contracts while still procuring wafers from TSMC....